Activity No.
3
Lesson 3: SWOT Analysis
What is it
SWOT Analysis focuses on internal and external factors in identifying business
opportunities, the analysis are as follows:
1. Strengths – these are internal characteristics of firms or industry that can
contribute directly to the profitability of firms and the industry. This includes
the availability of skilled laborers, highly qualified management team, adequate
equipment, and modern plant conducive for production and distribution
activities.
2. Weaknesses – these are internal characteristics of firms or industry that
features direct, actual, and current discounting factor on profitability that
contributes in making the industry less attractive.
3. Opportunities – these are positive impacts of various external environments on
the profitability of an industry. Like strengths, opportunities can contribute in
enhancing the profitability of an industry but unlike strengths, their
contributions are only potential, indirect, and prospective because the firms do
not have direct control over these factors.
4. Threats – these are undesirable impacts of external factors, because they can
potentially impair the profitability of firms in an industry. Just like weaknesses
these factors have harmful impacts on the profitability of the industry. But
unlike weaknesses these external factors can only have potential, indirect,
prospective effects because the firms or the industry do not have control over
these factors. The most they can do is manage these threats and minimize their
consequences.
What’s More
Direction: Match the word in column A to column B. Write only the letter of your
answer.
COLUMN A COLUMN B
1. Strengths A. Unskilled workforce
2. Weaknesses B. Rising office rentals
3. Opportunities C. Highly qualified management team
4. Threats D. Reliable supplier of raw materials
12
Applied
Economics
Quarter 2 – Module 2.1
Application of Business
Principles, Tools and
Techniques in Various Types of
Industries
Applied Economics – Grade 12
Alternative Delivery Mode
Quarter 2 – Module 2.1: Application of Business Principles, Tools and Techniques
in Various Types of Industries
First Edition, 2020
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Activity No. 4
Lesson 1: Types of Industries
Learning Competency: Apply business principles, tools, and techniques in
participating in various types of industries in the locality.
At the end of the lesson, you are expected to:
identify the types of industries in the locality;
apply the analysis of competitors in an industry; and
evaluate business opportunities.
What is it
Industry
Refers to the production of goods and services by converting the inputs into
outputs and or creation of utilities to customers.
It may also refer to an extraction, generation, conversion or production of goods
and services or construction of building products for a certain price.
Categories of Industry
a. Primary Industry
Refers to the creation of utilities by extracting materials from natural resources
or the growth and development of vegetation and animals by means of
reproduction process.
Types of Primary Industry
Extractive Industry. It refers to the extraction or drawing out goods from the
natural resources like land, water, air, etc. and creation of utilities in them. It
supplies raw materials to other types of industries. Mining, lumbering, hunting
and fishing are some examples of this sort of industry.
Genetic Industry. It is related to the growth and development of flora and
fauna by multiplying a certain species of plants and breeding of animals. Plant
nurseries, forestry, farming, animal husbandry, poultry etc. are the examples of
genetic industry.
b. Secondary Industry
Produces finished goods by the use of materials and supplies taken from the
primary industries.
Types of Secondary Industry
Manufacturing Industry. It is concerned to the production of goods by using
raw materials or semi raw materials an input and also creates from utility in
them. It is again divided into four types.
1. Analytical Industry. This industry relates to the analyzing and separating
different components from a single material. Examples: crude oil processed and
separated into petrol, diesel, kerosene, etc.
2. Synthetic Industry. This industry relates to the putting of various raw
materials together to make a final product. Examples: cement which is produced by
mixing concrete, gypsum, coal, etc. together
3. Processing Industry. An industry which produces the final products by
using raw materials and semi raw materials through different stages of production.
Examples: textile industry, paper and sugar mills, etc.
4. Assembling Industry. It refer to that industry which assembles various
component parts that are already manufactured to make a new product. Examples:
manufacturing vehicles, electric equipment, etc.
Service Industry. Those industries which do not produce physical goods but
create utility services and sell them for a price, Nursing home service, film
industries, traveling and lodging services, etc. are examples of service
industries.
What’s More
Direction: Identify the following company as to primary or secondary industry.
1. 3.
2. 4.
Activity No. 5
Lesson 2: Analysis of Competitors
What is it
This guide explains how to analyze your competitors:
Who are your competitors?
You can get clues from: Local business directories, Advertising, Press
reports, Exhibition and trade fairs, Flyers and marketing literature
What you need to know about your competitors?
Monitor the way your competitors do business.
The product and services they provide and how they market them
to customers
The prices they charge
How they distribute and deliver
How they treat their customers?
What they are planning to do?
Learning about your competitors
Read articles or ads about you competitors
Go online
Organizations and reference sources
Hearing about your competitors
Speak to your competitors
Listen to your customers and suppliers
How to act on the competitor information you get?
Put the information into three categories:
What you can learn from and do better?
What they’re doing worse than you?
What they’re doing the same as you?
What’s More
Direction: Write TRUE if the statement is correct and FALSE if it is wrong.
________ 1. Attending exhibition and trade is a way of knowing your competitors.
________ 2. We need to monitor our competitors so that we can contribute sound ideas
on how to improve their business.
________ 3. Reading articles or ads can be a source of information.
________ 4. Customers’ feedback helps in analyzing your competitors.
Activity N0. 6
Lesson 3: Evaluating a Business
What is it
News Article
Double Dragon to build hotel in Davao
By Iris Gonzales (The Philippine Star) Updated August 24, 2017 – 12:00am
MANILA, Philippines – Hotel of Asia Inc., a subsidiary of Double Dragon Properties
Corp., is expanding in Davao.
In a disclosure Tuesday, Double Dragon said Hotel of Asia signed a joint venture
agreement with Davao-based W2JP2 Corp. to bring Hotel 101 to Davao.
Hotel 101-Davao would rise on a 5,300 square meter prime commercial lot located
at EcoWest Drive at the side of SM City-Davao, Double Dragon said.
Envisioned to be the largest hotel in Mindanao, Hotel 101-Davao will have 519
hotel rooms, a commercial and retail strip, and facilities to cater convention.
Construction will commence in the last quarter of the year with completion of the
project targeted in 2020.
Hotel 101-Davao is an addition to Hotel 101-Manila near Mall of Asia, and Hotel
101-Fort which is already under construction.
The company aims to have a 5,000 hotel room portfolio by 2020.
Double Dragon recently upgraded its 2020 goal to hit 1.2 million square meters of
leasable space comprising office buildings, community malls, industrial buildings and
hotels.
“We envision Hotel 101 to become the largest and most recognized hotel chain in
the Philippines, significantly contributing to the recurring income of Double Dragon,
and at the same time providing the market with an innovative, safe and secure
investment platform,” said Double Dragon chairman Edgar Injap Sia II.
HOA is a joint venture among Sia’s Injap Investment Inc., Chan C. Bros. Holdings
Inc. (CCBHI) of the Oishi Group and Staniel Realty Development Corp.
It brought China’s iconic Jinjiang Inn to the Philippines.
In August, HOA formally opened its second Jinjiang Inn along Pasay Road in
Makati following the first Jinjiang Inn in Ortigas, which opened in 2015.
The Jinjiang Inn brand is from Jin Jiang Hotels, the largets hospitality
conglomerate from China, and the fifth largest in the world.
What’s More
Direction: Below are the steps in evaluating business opportunities as discussed in
the previous lessons. Based on the article given above, match the steps in Column A
to the phrase/sentence in Column B. Write only the letter of your answer.
COLUMN A COLUMN B
1. Self-analysis A. HOA is venture among Sia’s Injap Investment Inc.
2. Financial Components B. The Hotel will have 519 rooms, commercial and
retail strip, and facilities to cater the convention
3. Market Research C. “It provides the market with an innovative, safe and
secure investment platform.” said Double Dragon
Chairman
4. Support D. To become the largest and most recognized hotel in
the Philippines.
